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WALKER REJECTS FULL EXPANSION, PUSHES ALTERNATIVE PLAN -- Wisconsin Gov. Scott Walker isn’t supporting the ACA’s Medicaid expansion, but he’s touting another plan meant to expand coverage to about 225,000 residents. Here’s how it’d work: Walker’s plan eliminates Medicaid as an option for Wisconsinites earning above the federal poverty level — childless adults there can already be covered up to 200 percent FPL — and uses the savings to cover more people under 100 percent FPL. The state’s Medicaid population would actually drop by 5,400, while residents earning above 100 percent FPL could then seek coverage on the federal-run exchange. The POLITICO story: http://politi.co/15eDB4H

--EXCHANGE COVERAGE A SWEET DEAL? -- A major part of Walker’s plan is selling the idea that low-income individuals who’d otherwise qualify for the ACA’s Medicaid expansion would want to sign up for subsidized exchange coverage. This comes straight from the Walker press release, parts of which sound like they could have been written in HHS headquarters: “Governor Walker’s proposal will cover people living in poverty through Medicaid and allow individuals above that level to access affordable health insurance coverage through the federal health insurance exchange.” Also, the plan “works to make people less reliant on government and place responsibility for individual health care decisions with individuals through private solutions.” Affordable? Less government? Walker’s still talking about Obamacare here, right? Because those are words anti-Obamacare folks usually don’t use to describe ACA exchanges.

--ACA SUPPORTERS NOT THRILLED WITH PLAN -- Wisconsin consumer advocates, who earlier Wednesday made the case for full expansion, say the Walker plan will cover about 115,000 fewer state residents than MIT economist Jonathan Gruber had projected. “While we are still waiting for more details on Governor Walker’s proposal, we are very concerned that it is merely a smokescreen for a short-sighted decision that puts politics and ideology above the health of the people of Wisconsin,” said Robert Kraig, executive director of Citizen Action of Wisconsin, in a statement.

Happy Thursday and welcome to this Valentine’s Day edition of PULSE. If you’re feeling the sweet sting of Cupid’s arrow this year, well, we hope you’ve got insurance for that.

“While we were napping someone else began to rule the PULSE with love”

CANTOR A NOT SO SECRET ADMIRER OF TAVENNER -- House Majority Leader Eric Cantor again last night issued a statement of support for fellow Virginian Marilyn Tavenner’s nomination to run CMS. The House’s No. 2 Republican — who, of course, doesn’t have a confirmation vote — was quick to support her nomination last year, and he did so again last night. “I am convinced that with Marilyn we can work together to bring much needed reform to Medicare and Medicaid, and save them for those seniors and working families that rely on these programs,” Cantor said.

WILL HHS COURT MORE STATES? -- Time’s up, pencils down. Tomorrow is the last day for states to say whether they’ll build ACA exchanges with the feds, and a few high-profile states are still keeping their intentions a mystery. Virginia Gov. Bob McDonnell says he doesn’t want to do a partnership, but he’d be OK if the state Legislature advances a bill giving the state authority to regulate exchange plans — which pretty much sounds like a partnership. Florida Gov. Rick Scott remains a question mark, and some exchange watchers are even wondering if New Jersey Gov. Chris Christie will eventually partner with HHS. Although Friday is technically the deadline HHS set three months ago, the department has shown it’s willing to fudge deadlines a bit if means more states signing up to implement the ACA. The POLITICO story: http://politi.co/VVRaPx

TODAY: REPS. TO UNVEIL HIT BILL — Reps. Charles Boustany (R-La.) and Jim Matheson (D-Utah) are planning to introduce a bill to eliminate the ACA’s health insurance tax, which the CBO valued at $100 billion over 10 years. Boustany sponsored the bill in the last Congress and gathered 226 cosponsors, but it never came up for a vote. Matheson co-sponsored the bill last year but was not listed as an original co-sponsor.

--The bill is backed by the "Stop the HIT" Coalition, which includes the NFIB, Chamber and other business groups. “To encourage companies to hire and expand, Congress must eliminate the additional health coverage tax, which will only make it more expensive for businesses to provide health care coverage to their employees,” the Chamber’s Bruce Josten said in a statement.

ADVOCATES CAMPAIGN FOR MEDICARE DRUG NEGOTIATIONS -- About 300 health care advocacy groups today are launching a campaign supporting Medicare drug negotiations two days after President Barack Obama supported the deficit reduction idea in his State of the Union address. The advocates are armed with a new analysis from the Center for Economic and Policy Research, which projects federal savings ranging between $230 billion and $541 billion over the next decade if Medicare is allowed to negotiate prescription drug prices with manufacturers. Health Care for America Now is leading the coalition’s advocacy efforts, and the groups are sure to receive strong pushback from PhRMA, which has built up a track record of fending off this issue. The sign-on letter: http://politico.pro/Vh2jNK. The CEPR analysis: http://politico.pro/YYGF0u.

N.H. MAKES IT OFFICIAL -- New Hampshire Democratic Gov. Maggie Hassan formally applied for a partnership exchange in a Wednesday letter to HHS Secretary Kathleen Sebelius. Hassan told HHS that New Hampshire will do plan management and consumer assistance, but it won’t run its own reinsurance program, reversing a decision made by her predecessor late last year. Hassan’s letter: http://politico.pro/X4soyJ

** A message from the American Medical Association: Recent CBO estimates place the cost of eliminating the flawed sustainable growth rate (SGR) formula at $138 billion, which is less than the $146 billion that Congress has invested in the formula over the past decade to stop imminent payment cuts. **

FLORIDA CAN’T STOP SWINGING -- Following Gov. Walker’s announcement in Wisconsin yesterday, governors in eight of the nine most important swing states have now voiced their Medicaid intentions. Four want to expand, four don’t. The one remaining holdout: Florida. It always comes down to Florida.

VALENTINE’S DAY ON THE CHEAP -- CCIIO Director Gary Cohen and state health officials testify on exchange readiness at the Senate Finance Committee this morning: http://1.usa.gov/VJi9Om. … The House Energy and Commerce health subcommittee holds a hearing on replacing the SGR: http://1.usa.gov/11TJXqi

DRUG TRACKING BRINGS SURPRISE BENEFITS — Anew Health Affairs study shows that prescription drug monitoring programs created in almost every state to help law enforcement and regulatory agencies track shady activity have also helped health providers improve patient safety and quality of care. And even more could be done on the clinical side if there’s increased collaboration among the states, better provider training and more federal funding, the authors write. Forty-four states already have active programs in place, while another five are in the process of setting theirs up. The Health Affairs post: http://bit.ly/WnJdog

CONSERVATIVES: TIME TO BREAK UP WITH OBAMACARE -- A list of about 50 leading conservative voices signed onto the exact opposite of a love letter for Obamacare yesterday, calling on Congress to defund the law in the next continuing resolution. “Because the CR represents one of the best vehicles possible to delay the implementation of Obamacare, it must not be used to bargain on the upcoming sequester,” read the letter. See it here: http://bit.ly/Vc6LzN

SEBELIUS: ACA COMMENT WINDOW HAD TO BE SHORT — Responding this week to a December letter from Senate Republicans concerned about the short comment window for recent ACA rules, HHS Secretary Kathleen Sebelius contends the stakeholder community has already had ample opportunity to offer input through previous guidance documents and now needs a quick return on regs. The senators had questioned the department’s decision to provide 30-day windows instead of the typical 60 on proposed rules governing essential benefits, actuarial value, the temporary reinsurance program and more. “HHS is responsive to the fact that states, issuers, and other stakeholders are waiting for the final rules to prepare for 2014,” Sebelius explained on Tuesday. Her letter: http://politico.pro/14QOfxq

--A Senate GOP aide found some irony in Sebelius taking so long to respond to the senators’ letter. “Observers may find it interesting to note: while stakeholders are not guaranteed 60-days to review and comment on major PPACA-related regulations, the secretary allowedherself some 63 days to respond to the common-sense three-page letter from the senators,” the aide emailed PULSE. The senators’ original letter: http://politico.pro/Ve8l1F

KEEHAN: CONTRACEPTION COMPROMISE ‘SUBSTANTIAL PROGRESS’ — Sister Carol Keehan, head of the Catholic Health Association, weighed in on the Obama administration’s proposed contraception coverage rule — and she likes it a lot more than the U.S. Conference of Catholic Bishops, who rejected it last week. “These changes are substantial progress,” Keehan said in a statement yesterday. She approved of the administration’s expansion of the definition of a religious employer, and said CHA will weigh in on options for a third party administrator that prevents nonprofit religious groups from paying directly for the benefit. Keehan, a supporter of the health care law, broke with the administration over the contraception rule last year, saying it was unworkable.

--Keehan acknowledged the break with the bishops: "Throughout this sometimes challenging period, CHA has remained in constant dialogue with the leadership of the Unites States Conference of Catholic Bishops, individual bishops who had concerns and suggestions and the Administration. We believe that our commitment to dialogue to an acceptable solution is matched by all parties and we are committed to completing resolution of this issue. CHA is also aware that the issues that we have as a ministry are narrower than the broader concerns of the Bishops' Conference. Our mutual efforts to resolve the issues affecting our ministries are our contribution to the overall process." Her statement: http://bit.ly/VT7uG6

WHAT WE’RE READING, by Kathryn Smith

Because of their unique pricing system, prescription drug prices are on the rise again — while other health care costs are falling or staying the same, USA Today reports. http://usat.ly/Ugq6Ow

Health advocacy groups and officials, led by the Center for Science in the Public Interest, are calling on the FDA to curb the levels of sweeteners allowed in soda, according to The New York Times. http://nyti.ms/12Mhtiu

Arizona Rep. Trent Franks, an anti-abortion Republican, tells The Huffington Post that President Barack Obama’s State of the Union comments on gun control were hypocritical because the president supports abortion rights. http://huff.to/VcfSQZ

The Wall Street Journal has a look at the background of WellPoint’s new CEO, Joseph R. Swedish, who is currently serving as chairman of the Catholic Health Association. http://on.wsj.com/X5NQnd

A study shows that conditions that trigger inflammation in humans don’t necessarily trigger inflammatory reactions in lab mice — suggesting that lab mice might not actually be so great at their jobs, Slate reports. http://slate.me/VbJfTB

** A message from the American Medical Association: After Medicare physician payments were cut 5 percent in 2002, Congress passed 15 laws from 2003 through 2013 with temporary patches of one month to two years that cost a total of $146 billion. Instead of investing these funds in real physician payment reform, however, these temporary patches left the same failed formula in place. Congress should take advantage of the new, significantly reduced CBO cost estimate of $138 billion to prevent cuts caused by the SGR and act immediately to repeal the flawed formula. Go to www.ama-assn.org/go/medicarepayment for more information. **